TOKYO -- Japan's two biggest electronics companies are taking the ax to their subsidiaries, underlining how the global technology slowdown is forcing major restructuring here.

Sony Corp. announced it would take Aiwa Co. private, raising its 61% stake to 100%. Aiwa has already halved its work force to 4,800 and said it will cut at least another 400 employees. It also may shut down its remaining plants in Malaysia and Indonesia, which...